Dec. 9 (Bloomberg) -- South Africa’s ruling African
National Congress will make a final decision on nationalization
of mines next week as uncertainty around the issue deters
foreign investment, Secretary-General Gwede Mantashe said.

The role of the state in the economy will be among policy
issues discussed at a party conference scheduled for Dec. 16-20,
Mantashe wrote in an opinion piece today in the Johannesburg-based Sunday Times. The party has commissioned “thorough
research” on nationalization and “now the time for a decision
has come”, he wrote.

The ANC undertook a study on state intervention in the
mining industry after the party’s Youth League lobbied for
nationalization to give the black majority a bigger stake in the
country’s mineral wealth. The study found that seizures would
result in a near collapse of foreign investment and access to
finance, increased legal challenges by investors, and be “an
unmitigated economic disaster” for the country.

Anglo American Plc, Xstrata Plc and BHP Billiton Ltd. own
mines in the country.

“Any further uncertainty on this matter will affect our
ability to attract more investment,” Mantashe wrote in the
article. “While investor sentiment cannot dictate economic
policy, uncertainty is not to be encouraged if we are serious
about partnering locally and globally to build the economy.”

The ANC will also discuss the effectiveness of policies to
increase participation of blacks in the economy, redistribute
land and create jobs at the conference, which will elect a new
party leadership. The conference will be held in Bloemfontein.